Solution Manual for Consumer Behavior: Buying, Having, and Being 12th edition by Michael R Solomon Link full download solution manual: https://findtestbanks.com/download/solution-manual-for-consumerbehavior-buying-having-and-being-12th-edition-by-solomon/ Link full download test bank: https://findtestbanks.com/download/test-bank-for-consumer-behavior-buyinghaving-and-being-12th-edition-by-solomon/ Chapter 2: CONSUMER AND SOCIAL WELL-BEING CHAPTER OBJECTIVES When students finish this chapter, students should understand why: Ethical business is good business Marketers have an obligation to provide safe and functional products as part of their business activities Consumer behavior impacts directly on major public policy issues that confront oursociety Consumer behavior can be harmful to individuals and to society CHAPTER SUMMARY Ethical business is good business Business ethics are rules of conduct that guide actions in the marketplace; these are thestandards against which most people in a culture judge what is right and what is wrong, good or bad Marketers must confront many ethical issues, especially ones that relate to how much they make consumers ―want‖ things they don‘t need or are not good for them A related issue is materialism, which refers to the importance people attach to worldly possessions, and the role of business in encouraging this outlook Marketers have an obligation to provide safe and functional products as part of their business activities It is both ethically and financially smart to maximize customer satisfaction In some cases, external bodies such as the government or industry associations regulate businesses to ensure that their products and advertising are safe, clear, and accurate Consumer behavior researchers may play a role in this process and those who transformative consumer research (TCR) may even work to bring about social change Companies also play a significant role in addressing social conditions through their corporate social responsibility (CSR) practices and social marketing campaigns that promote positive behaviors Consumer behavior impacts directly on major public policy issues that confront our society Our relationships with companies and other organizations are complex and many issues that impact qualityof-life relate directly to marketing practices These include the tradeoff between our privacy and the ability of companies to tailor their offerings to our individual needs Other issues revolve around market access as many people are unable to navigate the marketplacedue to disabilities, illiteracy, or other conditions In addition, our fragile environment requires a commitment to sustainable business practices that attempt to maximize the triple bottom-line that emphasizes financial, social, and environmental benefits Consumer behavior can be harmful to individuals and to society Copyright © 2017 Pearson Education, Inc 2-1 Although textbooks often paint a picture of the consumer as a rational, informed decision-maker, in reality many consumer activities are harmful to individuals or to society The ―dark side‖ of consumer behavior includes terrorism, addiction, the use of people as products (consumed consumers), and theft or vandalism (anticonsumption) CHAPTER OUTLINE I Business Ethics and Consumer Rights A Business ethics are rules of conduct that guide actions in the marketplace—the standards against which most people in a culture judge what is right and what is wrong, good, or bad There are various universal values and many culture-specific ones (which influence whether business practices like bribery are acceptable) Some marketers violate consumer trust (using illegal mislabels on packages or using baitand-switch selling) Some marketers engage in practices that are legal but have detrimental effects on society ***** Use Consumer Behavior Challenge #11 Here ***** B Needs and Wants: Do Marketers Manipulate Consumers? Consumer space is an environment where individuals dictate to companies the types of products they want and how, when, and where, or even if, they want to learn about them (a shift from marketer space where companies called the shots) Do marketers create artificial needs? There are arguments to support both sides of this question a A need is a basic biological motive; a want represents one way that societyhas taught us to satisfy that need b A basic objective of marketing is to create awareness that needs exist, not to create needs C Are Advertising and Marketing Necessary? Products are designed to meet existing needs; advertising helps communicate their availability The economics of information perspective suggests advertising provides an important source of consumer information which consumers are willing to accept because it reduces the economic cost associated with searching for products ***** Use Consumer Behavior Challenge #1 Here ***** Copyright © 2017 Pearson Education, Inc 2-2 D Do Marketers Promise Miracles? Advertisers not know enough about people to manipulate them The failure rate for new products ranges from 40 to 80 percent E Materialism: Are You What You Own? Materialism refers to the importance people attach to worldly possessions Materialists are more likely to value possessions for their status and appearance- related meanings Materialists value the inherent qualities of what they buy One related dimension is provenance Provenance means shoppers are willing to pay more for an item when they know exactly where it comes from Curation refers to the use of an expert who carefully chooses pieces to include in a collection of consumer products Table 4.1 summarizes some of the similarities and differences between ―old‖ and ―new‖ materialism Discussion Opportunity—Ask: What is your opinion on materialism? Is it good or bad? Be careful how you answer this How marketers use materialism to their advantage? What is the alternative to materialism? Would this be good for our economy? II Consumers‘ Rights and Product Satisfaction Consumers have three options to pursue when they are dissatisfied with a product: 1) voice response, 2) private response, and 3) third-party response Several factors influence whichroute we choose A Market Regulation Several federal agencies oversee consumer-related activities in the U.S These include the Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, the Securities and Exchange Commission, and the Environmental Protection Agency Table 4.2 presents consumer legislation that is designed to protect consumers and Table 4.3 lists major U.S regulatory agencies Congress passed the Pure Food and Drug Act in 1906 and the Federal Meat Inspection act in 1907 in response to Upton Sinclair‘s 1906 book The Jungle, which exposed awful conditions in the Chicago meatpacking industry The Obama Administration issued voluntary guidelines that food products targeted to children ages 2-17 would have to provide a meaningful contribution to a healthy diet and would have to meet limits for harmful ingredients Discussion Opportunity—Ask students whether they feel advertising for foods that are high in sodium, saturated fat and added sugars contributes to child obesity Do they believe the guidelines should be voluntary? Why or why not? Corrective advertising refers to the use of advertising by a company to inform Copyright © 2017 Pearson Education, Inc 2-3 consumers of messages it previously published that were wrong or misleading B Consumerism Adbusters is a nonprofit organization that discourages rampant commercialism and advocates for social activism These organizations use culture jamming, a strategy aimed to disrupt efforts by the corporate world to dominate our cultural landscape Discussion Opportunity—Ask: Has cultural jamming ever affected you and your consumption behavior? Any of your friends? If so, why you think the behavior occurred? John F Kennedy declared a ―Declaration of Consumer Rights‖ in 1962 These include the right to safety, the right to be informed, the right to redress, and the right to choice Some consumer researchers are not only seeking to study consumer responses but to rectify what they see as pressing social problems in the marketplace This is known as participatory action research (PAR) or Transformative Consumer Research (TCR) C Social Marketing and Corporate Social Responsibility (CSR) Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving Many firms today try to integrate corporate social responsibility (CSR) into their business models CSR describes processes that encourage the organization to make a positive impact on the various stakeholders in its community Cause marketing is a popular strategy that aligns a company or brand with a cause to generate business and societal benefits III Major Policy Issues Relevant to Consumer Behavior A Data Privacy and Identity Theft One of the biggest issues marketers face relates to how much they can or should know about their customers Technologies record much of our activities including our location if we carry a smart phone with GPS Our digital actions may even have financial value because of an industry called real-time bidding, an electronic trading system that sells ad space on the Web pages people click on the moment theyvisit Identity theft occurs when someone steals your personal information and uses it without your permission It is the most common consumer complaint according to the FTC Phishing occurs when people receive fraudulent emails that ask them to supply account information Consumers are also suspect to botnets that hijack computers without a trace Locational privacy is a related issue as GPS tracking technology identifies and records consumer locations Copyright © 2017 Pearson Education, Inc 2-4 B Market Access For many, market access is limited due to physical, mental, economic, or social barriers Disabilities affect access to stores both physical and online Food deserts are Census tracts where 33% or 500 people live more than a mile froma grocery store in an urban area or more than 10 miles away in a rural area Media literacy refers to a consumer‘s ability to access, analyze, evaluate, and communicate information in a variety of forms, including print and non-print messages Functional literacy refers to the ability to read sufficiently to carry out everyday tasks C Sustainability and Environmental Stewardship Sustainability is not just about ―do-gooder‖ efforts that reduce a company‘s carbon footprint; it also benefits companies financially A triple bottom-line orientation refers to business strategies that strive to maximize return in three ways:  Financial  Social  Environmental Cradle to cradle means that the organization aims for its products to be made from natural materials that are fully reusable or recyclable so that the company actually uses zero resources to make it Conscientious consumerism means that consumers are paying attention to sustainability efforts by companies D Green Marketing and Greenwashing As a response to consumer efforts, many firms have chosen to protect or enhance the natural environment as they go about their business activities This practice is known as green marketing Even though consumers largely support green products, many people don‘t actually buy green This is in part due to the higher price of green products It is also due to distrust because of greenwashing Greenwashing occurs when companies make false or exaggerated claims about how environmentally friendly their products are Marketers point to a segment of consumers they call LOHAS – an acronym for ―lifestyles of health and sustainability.‖ Table 4.4 shows that the LOHAS market divides into five different sectors E Product Disposal How we get rid of stuff is also an important element of consumer behavior Later cycling means that one consumer exchanges something she owns for something another person owns There is an underground economy of products that are sold person to person rather than through traditional market systems Trading or reselling products is called recommerce Copyright © 2017 Pearson Education, Inc 2-5 Discussion Opportunity— Many consumers mistrust green marketing claims because of a history of companies ―greenwashing,‖ (positioning a product or service as environmentally friendly when it does not reduce harm to the environment, diverting attention from a company’s environmental wrongdoings, or overstating a product’s green benefits) Ask: Which companies students associate with green marketing? Which companies are they skeptical of green marketing claims? Why? IV The Dark Side of Consumer Behavior A Consumer Terrorism Disruptions to our financial, electronic, and supply networks are possible through attacks such as bioterrorism and cyberterrorism B Addictive Consumption Consumer addition is a physiological or psychological dependency on products or services Addiction to Technology Consumers can also be addicted to technology Social media addiction can be compared to a chemical dependency Technology Issues Some other issues with technology include cyberbullying and phantom vibration syndrome C Compulsive Consumption Compulsive consumption refers to repetitive and often excessive shopping performed to relieve tension or anxiety Three common elements characterize negative or destructive consumer behaviors: 1) the behavior is not by choice, 2) the gratification of the behavior is short-lived, and 3) the person experiences strong feelings of regret or guilt D Consumed Consumers Consumed consumers are people who are used or exploited for commercial gain Examples include prostitutes and organ, blood, and hair donors E Illegal Acquisition and Product Use Analysts estimate that the cost of crimes that consumers commit against business totals more than $40 billion per year Shrinkage is one such crime which refers to inventory and cash losses caused by shoplifting and employee theft Counterfeiting is where companies or individuals sell fake versions of real products to customers F Anticonsumption Anticonsumption ranges from relatively mild acts like spray-painting graffiti on buildings to serious incidences of product tampering Copyright © 2017 Pearson Education, Inc 2-6 End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 2-1 CB As I See It: Ronald Hill, Villanova University Being ―poor‖ has different implications in different nations, in terms of what is taken for granted, especially in developed Western nations One study found that in developed national, the level of material yearning increased in middle and high school, but there were also opportunity for self-esteem development Impoverished neighborhoods not offer this development Another study showed that those with more have more positive social comparisons than those with less A third study showed that the ability to save resulted in greater feeling of well-being for those in poorer nations 2-2 The Tangled Web Gripe sites enable consumers to complain about companies online 2-3 Marketing Pitfall Brands must ensure their messages are not harmful or inaccurate 2-4 Marketing Pitfall Slacktivism supports the idea that there are too many small and meaningless expressions of support for important causes, to overexposure via technology 2-5 CB As I See It: Stacey Menzel Baker, Creighton University Consumer behavior researchers study the relationships among people possessions, places, brands, experiences, and other people Relationships are important in creating, maintaining, and reconstructing our identities The relationships with stores and marketplaces that bring us pain when they are gone also bring us a sense normalcy when they return 2-6 The Tangled Web Because of the ability to use facial recognition and track keystrokes, technology has created serious privacy risks Markets use access to personal information to created viewer- relevant advertising 2-7 Marketing Opportunity When consumer make the decision to practice sustainability, they are much more likely to follow through on that decision 2-8 The Tangled Web Yik Yak allows cyberbullying on college campuses when users can post a profile and remain anonymous The site has encouraged violence and gang rape by posting ―yaks.‖ Copyright © 2017 Pearson Education, Inc 2-7 REVIEW 2-1 What are business ethics, and why is this an important topic? Business ethics are rules of conduct that guide actions in the marketplace These are the standards against which most people in a culture judge what is right or wrong, good or bad However, the notions of right and wrong differ among people, organizations, and cultures This is an important distinction as we learn to work with those of other cultures (2 minutes, Chapter Objective 1, AACSB: Reflective Thinking) 2-2 The economics of information perspective argues that advertising is important Why? This view emphasizes the economic cost of the time spent searching for products Accordingly, advertising is a service for which consumers are willing to pay, because the information it provides reduces search time (2 minutes, Chapter Objective 1, AACSB: Reflective Thinking) 2-3 State two important criticisms of marketing and provide the pros and cons for each Some feel that marketers contribute to the moral breakdown of society when they promote hedonistic pleasure and encourage the pursuit of humanism at the expense of spirituality and the environment The marketing system creates demand that only its products can satisfy The argument against this thought is that the need is already there, and marketers simply recommend ways to satisfy it Marketing creates awareness that the need exist; it does not create the need Another criticism of marketing is that it manipulates the masses This includes online communications Markets arbitrarily link products to desirable social attributes to foster a materialistic society Marketers focus on the irrational value of the goods they symbolize However, some feel that products meet existing needs, and marketing activities only help to communicate the availability of the good or service The economic cost of time we would need search for products is diminished (5 minutes, Chapter Objective 1, AACSB: Reflective Thinking) 2-4 Give two examples of important legislation that relate to U.S consumers The Pure Food and Drug Act in 1906, the Federal Meat Inspection Act in 1907, the Foreign Corrupt Practices Act in 1977 and the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act are examples given in the text (2 minutes, Chapter Objective 2, AACSB: Application of Knowledge) 2-5 Define social marketing, and give an example of this technique Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving (1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge) Copyright © 2017 Pearson Education, Inc 2-8 2.6 What is the primary difference between transformative consumer research and other kinds of consumer research? Transformative consumer research promotes research that includes the goal of helping people or brings about social change This idea views consumers as collaborators who work to realize change, rather than as an issue that needs to be research Other kinds of research promote research as a way to study an issue, not to promote change (2 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2-7.Why is market access an important aspect of consumer well-being? What are some important reasons why consumers can experience limited market access? Market access is the consumer’s ability to find and purchase goods and services Access might be limited because of physical, mental, economic, or social barriers There are 11 million U.S adults that have conditions that m make it difficult for them to leave home to shop This can be minimized through the use of technology and other resources (2 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2-8 What is greenwashing, and why is it a problem for marketers? Greenwashing is the promotion of environmentally friendly products, but often, the claims are false or exaggerated Studies show that almost one-fourth of U.S consumers feel they have no way of knowing how true a claim might be, and one report shows that 95 percent of consumer companies that market products as ―green‖ make misleading or inaccurate claims (2 minutes, Chapter Objective 3, AACSB: Reflective Thinking) CONSUMER BEHAVIOR CHALLENGE Discuss 2-9 The Culture Jammers Manifesto proclaims opposition to the ―mind-polluters‖: ―On the rubble of the old culture, we will build a new one with non-commercial hear and should ― What‘s your take on ―culture jamming; advertisers deserve to be parodied? Students will have mixed views about this topic Students should identify parody and culture jamming, and the goal of the process Students should also identify the goal, which is to change the way information flows Students should offer examples of why some American companies dismiss the concept, as well as some examples of why the concept should be taken seriously (20 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2-10 Should scientists who study consumer behavior remain impartial, or is it appropriate for them to become involved in the topics they research like those who adhere to the transformative consumer research perspective? Students will have varied opinions on this topic Students should be able to identify and Copyright © 2017 Pearson Education, Inc 2-10 discuss transformative consumer research and its goals of helping bring about social change Students should be able to compare this concept to more traditional types of research Discussion should relate to corporate social marketing and indicate how research has furthered this process (20 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2-11 Because of higher competition and market saturation, marketers in industrialized countries try to develop third-world markets Asian consumers alone spend $90 billion a year on cigarettes, and U.S tobacco manufacturers push relentlessly into these markets We find cigarette advertising, which often depicts glamorous Western models and settings, just about everywhere – on billboards, buses, storefronts, and clothing – and tobacco companies sponsor many major sports and cultural events Some companies even hand out cigarettes and gifts in amusement areas, often to preteens Should governments allow these practices, even if the products may be harmful to their citizens or divert money that poor people should spend on essentials? If you were a trade or health official in a third-world country, what guidelines, if any, might you suggest to regulate the import of luxury goods from advanced economies? Students will have a variety of views on this topic Student should indicate regulations and laws in the U.S that affect a company’s ability to market, and indicate how marketing is different in developing or third world nations Students should discuss analyst prediction for growth in Europe and the U.S as well as the expected huge growth in China and other Asian and developing countries This response should also explain provenance, and the willingness to pay more for an item when consumers know exactly where it came from Curation, the process of being an expert on a product should also be discussed (20 minutes, Chapter Objective 2, AACSB: Reflective Thinking) 2-12 The chapter discusses the practice of serial wardrobing, where people return an outfit after they wear it for a special occasion such as a formal What you think of this practice? Is it OK to use an expensive product once and then get your money back? Students should explain how serial ward robing constitutes consumer theft and fraud Students should identify serial wardrobers as those who buy an outfit, wear it once, and return it Students should also indicate other types of wardrobing fraud such as changing price, exchanging products for higher priced ones, or using fake or old receipts to return a product The retail industry loses about $16 billion a year to these and other types of fraud (20 minutes, Chapter Objective 4, AACSB: Reflective Thinking) 2-13 ―College students‘ concerns about the environment and vegetarianism are just a passing fad: a way to look ‗cool.‘ ‖ Do you agree? Students will have mixed views about this subject What they need to see is that a fad that Copyright © 2017 Pearson Education, Inc 2-11 Data Privacy and Identity Theft • • • Identity theft occurs when someone steals your personal information and uses it without your permission The Personal Data Notification & Protection Act of 2015 The Student Digital Privacy and Parental Rights Act of 2015 Copyright © 2017 Pearson Education, Inc 2-20 Data Privacy and Identity Theft • • • • Real time bidding Phishing Botnets Locational Privacy Copyright © 2017 Pearson Education, Inc 2-21 Market Access • • • • Disabilities Food deserts Media literacy Functionally illiterate Copyright © 2017 Pearson Education, Inc 2-22 Sustainability and Environmental Stewardship A triple bottom-line orientation refers to business strategies that strive to maximize return in three ways: • Financial • Social • Environmental Copyright © 2017 Pearson Education, Inc 2-23 Sustainability and Environmental Stewardship • • Sustainability Conscientious consumerism Copyright © 2017 Pearson Education, Inc 2-24 Green Marketing and Greenwashing Copyright © 2017 Pearson Education, Inc 2-25 Table 2.4 LOHAS Market Sectors Copyright © 2017 Pearson Education, Inc 2-26 For Reflection • • Would you prefer to purchase from a restaurant that composts? What are some sustainable methods used in your workplace? Copyright © 2017 Pearson Education, Inc 2-27 Learning Objective Consumer behavior can be harmful to individuals and to society Copyright © 2017 Pearson Education, Inc 2-28 Consumer Terrorism • • Cyberterrorism Guerrilla marketing Copyright © 2017 Pearson Education, Inc 2-29 Addictive Consumption • • • • • Consumer addiction Social media addiction Cyberbullying Phantom Vibration Syndrome Compulsive consumption Copyright © 2017 Pearson Education, Inc 2-30 Dark Side of CB Consumed consumers • Illegal acquisition and product use o Consumer theft and fraud -Shrinkage -Serial wardrobers -Counterfeiting Anticonsumption Copyright â 2017 Pearson Education, Inc 2-31 Reflection • • Do you know someone who is addicted to social media? In what way? If you work in retail, have you experienced consumers habitually returning items? Copyright © 2017 Pearson Education, Inc 2-32 For Review Ethical business is good business Marketers have an obligation to provide safe and functional products as part of their business activities Consumer behavior impacts directly on major public policy issues that confront our society Consumer behavior can be harmful to individuals and to society Copyright © 2017 Pearson Education, Inc 2-33 Copyright © 2017 Pearson Education, Inc 1-34 ... think this information is relevant for your friend when thinking about the marketing mix of his gym? Why or why not? Consumer and Social Well -Being CONSUMER BEHAVIOR, 12e Michael R Solomon 2-1... to U.S consumers The Pure Food and Drug Act in 1906, the Federal Meat Inspection Act in 1907, the Foreign Corrupt Practices Act in 1977 and the 2010 Dodd–Frank Wall Street Reform and Consumer. .. food instead of forks), and sales dropped dramatically at the company‘s franchises This forced layoffs and reduced hours for many employees – until the woman was arrested for fraud Consumers commonly